The Dow Jones report, citing people familiar with the matter, comes as Rio Tinto, which owns 51 per cent of Turquoise Hill, is seeking to divest a number of its underperforming assets. It is understood Turquoise has actively considering selling its Ivanhoe stake for some time.

In a statement Ivanhoe said it was “aware that Turquoise Hill Resources has initiated a strategic review of its business, which includes a strategic review of its options in relation to its shareholding in Ivanhoe Australia".

Ivanhoe shares have fallen 40¢, or two thirds, to 20¢ a share since January. Ivanhoe is primarily focused on copper and gold production.

The news of its divestment plan comes as Turquoise Hill signed a binding agreement with Sumeru Gold BV to sell its 50 per cent interest in Altynalmas Gold for US$300 million ($285 million). Turquoise Hill retains a 58 per cent interest in Mongolian coal miner SouthGobi Resources but reports suggest Citi could also be selling this stake on behalf of the company as well.

Turquoise’s contentious Mongolian development, Oyu Tolgoi, is a partnership between the country’s government and is 66 per cent owned by Turquoise Hill. Phase 1 of Oyu Tolgoi was 99 per cent completed at the end of last year and is expected to cost approximately $6.2 billion.